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Lighter Rises as a new Force in Perp dexs, Backed by $68 Million and Robinhood Investment
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Teh decentralized exchange (DEX) landscape is rapidly evolving, and Lighter is emerging as a significant contender, securing $68 million in new funding and attracting investment from an unlikely source: Robinhood. the company’s unique approach to layer 2 scaling and its founder’s unconventional path are quickly positioning it as a force to be reckoned with in the competitive world of perpetual decentralized exchanges.
From AI to Trading: A Founder’s Journey
Lighter’s story is deeply intertwined with the experience of its founder, Vladimir Novakovsky. Unlike many Web3 entrepreneurs who pivoted to artificial intelligence, Novakovsky took the opposite route. “Even if you are a genius, you must focus on your area of expertise,” Novakovsky reportedly stated, a sentiment born from his own career trajectory.
Novakovsky’s path began with exceptional academic achievement. Selected for the U.S. national team in the International Data Physics Olympiad at a young age, he entered Harvard University at 16 and completed his studies in just three years.At 18, he received a direct invitation to join Citadel, one of the world’s largest hedge funds, from CEO Ken Griffin.
After nearly 15 years as an engineer and trader, Novakovsky co-founded Lunchclub, an AI-powered social networking platform, in 2017. While Lunchclub initially gained traction, growth stalled in 2022.Faced with limited options – small-scale monetization or a change into a platform akin to TikTok or snapchat – Novakovsky chose a third path: innovation focused on his core competency – trading. This decision led to the rebirth of Lunchclub as Lighter.
Securing Funding and Attracting Investment
The $68 million funding round, as reported by Fortune, included participation from Robinhood, a move that underscores the growing interest in decentralized finance from conventional financial institutions. This investment, coupled with lighter’s innovative technology, positions the platform for significant growth.
A Novel Approach to Layer 2 Scaling
Lighter distinguishes itself through its unique Layer 2 scaling solution, leveraging zero-knowledge (ZK) proofs to optimize transaction speed and reduce gas costs. The platform utilizes a custom-built “Lighter’s sorter” within the circuit. Crucially, Lighter’s sorter possesses only “sorting authority,” as the matching logic is fixed within the circuit, preventing manipulation.
As one analyst noted, Lighter’s approach creates simpler proofs by increasing the complexity of the proof process itself, optimizing transaction speed. This aligns with the industry’s growing consensus that “ZK is the end goal,” as evidenced by developments like Brevis and ZK Sync Airbender.
A Unique Fee Structure and Airdrop Potential
Lighter’s fee structure is also generating attention. The protocol waives trading fees for retail traders, albeit with a higher latency of 300 milliseconds for taker orders and 200 milliseconds for pending orders. Premium accounts, geared towards market makers and high-frequency traders, are charged fees of 0.002% and 0.02% for pending and taker orders,respectively,with substantially reduced latency (0 and 150 milliseconds).
This model is speculated to be inspired by Robinhood’s Payment for Flow (PFOF) mechanism, with fees from premium accounts mirroring the revenue Robinhood generates from market makers. this structure incentivizes high trading volume while reducing gas costs.
The ongoing second season of the Lighter Points Program, distributing 200,000 points weekly based on trading volume, open interest, and profit, further fuels engagement. Given that the Fortune report indicated the funding round included token warrants, the Points system is highly likely a key component of future airdrops.
The Battle for Puff DEX supremacy
Lighter’s emergence signals a potential resurgence in the competition for dominance in the puff DEX space.While HyperLiquid initially led the charge, Lighter’s rapid growth and innovative technology suggest the final battle may have just begun. According to DefiLlama data,Lighter’s trading volume has recently reached record highs,though the absence of trading fees raises the possibility of airdrop hunters inflating the numbers.
Despite his unusual background – entering Harvard at 16 and being recruited by Citadel’s CEO – Novakovsky’s previous venture into AI social networking faced challenges. His return to trading with Lighter demonstrates a crucial lesson: even exceptional talent benefits from focused expertise. Lighter’
